BPM Mezzanine Fund
SICAV-SIF, SCA (BPM) has provided financing
for the buy-out of a well-known Latvian dairy Smiltenes Piens. Smiltenes Piens
is one of the leading Latvian dairy companies with a high quality product
portfolio, ranging from dairy drinks to cottage cheese. Smiltenes Piens stands
out with its excellent choice of cheese products, which are very popular in the
Latvian market. The new owner of the Company, Mr. Armands Kovaldins, plans to
continue with the same strategy and maintain strong foothold in the Latvian
market, but also gradually increase the share of exports in the sales portfolio.

Commenting on the deal, Mr. Armands
Kovaldins noted that the buy-out of Smiltenes Piens was a logical step for all
parties involved. We respect and value very highly the contribution of Gita
Murniece and Girts Strads (the exiting shareholders), who developed Smiltenes
Piens over decades and turned it into a modern dairy with high quality products
and strong brands. This forms a strong foundation to grow the business further
and we believe that together with the existing management team we are able to
achieve this.

“It is an excellent opportunity for us to back
the buy-out of such prominent company with strong brands, top-quality products
and high reputation. We believe Mr. Kovaldins together with the management team
can develop the Company further and the products of Smiltenes Piens can also be
well received in the export markets. We also consider the dairy industry to be
attractive with its countercyclical characteristics. The investment is an
awaited addition to BPM’s portfolio due to its stable nature in combination
with growth potential,” said Martin Reinson, Partner of BPM Capital.

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More information about
BPM Capital

BPM Capital (www.bpmcapital.eu) is an independent investment manager operating out of
two offices, in Tallinn and Warsaw. It has been founded and is managed by Kalmer Kikas, Martin
Reinson, Paweł Zabrzycki and Priit
Veering. BPM is supported by prominent international and domestic
institutional investors. BPM was originated through the Baltic Innovation Fund
initiative created by cooperation between Estonia, Latvia, Lithuania and the
European Investment Fund.

More information about Smiltenes Piens

Smiltenes Piens (www.smiltenespiens.lv) is a Latvian dairy company operating out of two production facilities
in Smiltene and in Blome. The Company’s key products include cheeses, dairy
desserts, dairy drinks, cottage cheese, sour cream, kefir, butter and milk.
Smiltenes Piens products are widely recognized and have received a number of
prizes and honors.